Circular CSSF 19/722 is a CSSF circular, published 1 July 2019 and updated 6 November 2019. Subject: FATF statements concerning 1) jurisdictions whose anti-money laundering and combating the financing of terrorism regime has substantial and strategic deficiencies; 2) jurisdictions whose anti-money laundering and combating the financing of terrorism regime requires the application of enhanced due diligence measures proportionate to the risks arising from these jurisdictions; 3) jurisdictions whose anti-money laundering and combating the financing of terrorism regime is not satisfactory. It was repealed by Circular CSSF 19/730.
\nRelevant for: AIFMs, AISPs, Central Securities Depositories (CSDs), Credit institutions, Data Reporting Service Providers (DRSPs), E-money institutions, Investment firms, Investment fund managers, Investment funds and vehicles, Management companies - Chapter 15, Management companies - Chapter 16, Other specific authorisations, registrations and information, Part II UCIs, Payment institutions, Payment institutions/electronic money institutions/AISPs, Pension funds, Securitisation undertakings, SICARs, SIFs, Specialised PFS, Support PFS, UCITS.
\nMain topic: Financial crime. Keywords: AML/CFT, Proliferation financing, Terrorist financing.
\nRepeals Circular CSSF 19/711.
\nIn case of discrepancies between the French and the English text, the French text shall prevail.
\nLuxembourg, 1 July 2019
\nTo all the persons and entities under the supervision of the CSSF
\nRe:
\nFATF statements concerning 1) jurisdictions whose anti-money laundering and combating the financing of terrorism regime has substantial and strategic deficiencies; 2) jurisdictions whose anti-money laundering and combating the financing of terrorism regime requires the application of enhanced due diligence measures proportionate to the risks arising from these jurisdictions; 3) jurisdictions whose anti-money laundering and combating the financing of terrorism regime is not satisfactory
\nLadies and Gentlemen,
\nThe Financial Action Task Force (\"FATF\") Plenary of June 2019 issued statements on the following topics: 1) Jurisdictions whose anti-money laundering and combating the financing of terrorism (\"AML/CFT\") regime has substantial and strategic deficiencies and that are subject to an FATF call on its members and other jurisdictions to apply counter-measures The FATF maintains its position that the AML/CFT regime of the Democratic People's Republic of Korea (\"DPRK\") continues to have substantial and strategic deficiencies and maintains the application of counter-measures against the DPRK. Moreover, the FATF reiterates that the jurisdictions must take the necessary measures to close existing subsidiaries, branches or representative offices of DPRK banks, where applicable, within their respective territories. We therefore require you to continue taking into account the risks arising from the deficiencies of the AML/CFT regimes, including the fight against the financing of weapons of mass destruction proliferation regime, of the DPRK and to give special attention to business relationships and transactions with this jurisdiction, including with companies and financial institutions from this jurisdiction and those acting on their behalf. Circular CSSF 19/722
\nWe require you to apply in these cases enhanced due diligence and monitoring measures in order to avoid these business relationships being used to bypass or evade the application of enhanced measures and counter-measures. In this context, we also invite you to inform us in case of a correspondent banking relationship with a credit institution from the DPRK. Finally, we invite you to maintain enhanced mechanisms for reporting suspicious activity to the Financial Intelligence Unit (\"FIU\") of the Public Prosecutor's Office. 2) Jurisdictions whose anti-money laundering and combating the financing of terrorism regime requires the application of enhanced due diligence measures proportionate to the risks arising from these jurisdictions In June 2016, the FATF welcomed Iran’s high-level political commitment to address its strategic AML/CFT deficiencies and its decision to seek technical assistance in the implementation of the FATF’s Action Plan. In light of Iran’s demonstration of its political commitment and the relevant steps it took in line with its Action Plan, the FATF decided in February 2019 to continue the suspension of counter-measures. Indeed, in 2017, Iran established a cash declaration regime and, in 2018 and January 2019, enacted amendments to its AML/CFT regime. The FATF recognises the progress of these legislative efforts but will only consider fully enacted legislation. However, Iran’s Action Plan has expired while the remaining deficiencies had not been fully addressed yet. The FATF decided in its June 2019 Plenary meeting to continue the suspension of counter-measures while requiring the implementation of increased supervisory examination for branches and subsidiaries of financial institutions based in Iran, in line with its February 2019 Public Statement.
\nThe text above is the opening of the document; the PDF carries the whole.
\nDocument page, PDF. Source: Commission de Surveillance du Secteur Financier (CSSF), reproduced with the CSSF's consent. The French text prevails.
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